Meaning and Scope of Statistics

What is Statistics

• The systematic treatment of quantitative expression is known as Statistics

  • Meaning: When a quantitative expression is treated systematically, it is called Statistics.
  • Quantitative expression: Something that can be measured in quantity. Example: 10, 11, 8, 52
  • Example: Calculating the average

• The word Statistics refers to:

  • A. Statistical Data: Plural sense
  • B. Statistical Methods: Singular sense

Statistical Data (Plural sense)

• Statistics are aggregates of facts

  • Example: 1000 Rupees pocket money of Aditya
  • Aggregates: A collection of many facts

• Statistics are affected to a marked extent by multiplicity of causes

  • Example: Various reasons for electricity bill

• Statistics are numerically expressed

  • Always numerical

• Statistics are enumerated or estimated

  • Enumeration = Accurate counting
  • Estimate = Approximation

• Statistics are collected in a systematic manner

• Statistics are collected for a predetermined purpose

• Statistics are placed in relation to each other

Statistical Methods (Singular sense)

• Use of methods:
  • Collection of data
  • Organization of data
  • Presentation of data
  • Analysis of data
  • Interpretation of data

Function of Statistics

• Statistics simplify data: Make data easier
• Statistics provide technique of comparison: Make comparison easier
• Statistics help in formulating policies: Help in policy-making
• Statistics help in forecasting: Help in predicting the future
• Statistics present the facts in a definite form: Present facts clearly
• Statistics study relationships: Study relationships accurately

Importance of Statistics

• Statistics and Economics: Help understand relationships in economics
• Statistics and Economic Planning: Help in making economic plans for a country
• Statistics and Business Planning: Help in business decision-making
• Statistics and Government: Help the government in decision-making

Limitations of Statistics

• It does not study qualitative aspects: Like honesty
• It does not study individuals
• Statistical results lack mathematical accuracy: Depend on averages
• Statistics can be misused: Results can be manipulated
• Statistical data should be homogeneous: Data should be homogeneous
• Expertise is required for proper use of statistics

Homework

• Importance of statistics in:
  • Economics
  • Economic Planning
  • Business Planning
  • Government